This course goes beyond the basics and addresses important practical issues that an experienced practitioner must know. Even if you have attended other S corporation courses, you will learn something new in this course.

Objectives

* Understand how stock basis, AAA, and other limitations are determined * Appreciate how corporation planning can be used in an S corporation to change the effects of the one-class-of-stock rule * Understand what S corporation issues are being debated with the Service, settled in courts, and guided by administrative decisions

Highlights

* Cases, rulings, and tax law changes affecting S corporations * Compensation planning in S corporations, including limitations in a family-controlled business; self-employment tax issues * Use of redemptions: still some advantages * Planning for the liquidation of an S corporation * Tax issues for family ownership of S corporation stock * Impact of the tax on net investment income on sales of S corporation stock * Stock basis: Loss limitations, AAA, and distribution issues in depth * Debt basis: what the regulations on back-to-back loans mean to investors * Estate planning for S corporation shareholders, including buy-sell agreements, QSubs, ESBTs, and uses of life insurance * Built-in gains: the 5-year recognition period is permanent * S corporation structuring: one class of stock
* Methods of accounting * Legislation on mortgage interest reporting, basis, statute of limitations, and tax return due dates

Who Should Attend

All practitioners and controllers who have attended a basic S corporation course and want to understand more complex issues and their practical implications

Course Level

Advanced

Prerequisites

A basic course in S corporations; some experience in advising S corporations and their shareholders